How do I correct excess salary deferral like excess employee contribution to 401k.

ilanchezhianb-gm · ‎December 28, 2023

GenmarieM · ‎December 28, 2023

Hello there,

I am here to share some steps to correct your excess salary deferral and excess employee contribution to 401k.

To correct the excess salary deferral, I suggest contacting our Customer Support team. They have the tools to do adjustment to correct it.

Regarding the excess employee contribution to the 401k, you can initiate a reimbursement payment so the amount will be included in your upcoming paycheck.

Here's how:

Go to Payroll, then Employees.
Select your employee.
From Pay types, select Start or Edit.
Scroll to the Additional pay types section and select Reimbursement.

If there's an existing reimbursement pay type, you can add a new one in the Common pay types section dropdown. Just select + Another Reimbursement type to add new.
You can add the default amount or leave it blank, and just enter the amount as you run payroll.
You can also rename this pay type. To rename, select Edit next to Reimbursement.

5. When you’re finished, select Save.

Additionally, I'm adding this helpful article as your reference in entering your employee's year-to-date paycheck info, and company totals: Add pay history to QuickBooks Online Payroll.

Come back to this post if you have other concerns and follow-up questions about the excess employee contribution and excess salary deferral in QBO.

View solution in original post

GenmarieM · ‎December 28, 2023

Hello there,

I am here to share some steps to correct your excess salary deferral and excess employee contribution to 401k.

To correct the excess salary deferral, I suggest contacting our Customer Support team. They have the tools to do adjustment to correct it.

Regarding the excess employee contribution to the 401k, you can initiate a reimbursement payment so the amount will be included in your upcoming paycheck.

Here's how:

Go to Payroll, then Employees.
Select your employee.
From Pay types, select Start or Edit.
Scroll to the Additional pay types section and select Reimbursement.

If there's an existing reimbursement pay type, you can add a new one in the Common pay types section dropdown. Just select + Another Reimbursement type to add new.
You can add the default amount or leave it blank, and just enter the amount as you run payroll.
You can also rename this pay type. To rename, select Edit next to Reimbursement.

5. When you’re finished, select Save.

Additionally, I'm adding this helpful article as your reference in entering your employee's year-to-date paycheck info, and company totals: Add pay history to QuickBooks Online Payroll.

Come back to this post if you have other concerns and follow-up questions about the excess employee contribution and excess salary deferral in QBO.

jane_Aqua-Tots · ‎October 17, 2024

This happened in 2023 and again in 2024 that the employee has over contributed to the 401k. The max is set on the item but yet it still deducted one additional paycheck which put the contribution over the IRS limit. How can this be corrected for the future when the limit is already in there.

CarlSJ · ‎October 17, 2024

This isn't the experience we want you to have with 401k deductions for your employee, Jane. Let me route you to our payroll support team to investigate this further.

Since you've already set the max on the item but still have an inaccurate deduction, I suggest contacting our payroll support. They have the tools to check the YTD deduction for 401k to that specific employee or verify if the limit is already reached.

Here's how to contact them within QBO:

Sign in to your QBO account.
Go to the Help icon and select the Search tab.
Enter Contact Us and click on it.
Choose a way to connect with our support:

Chat with us, to start a conversation with a support expert
Get a callback, where they save you a spot and call you back

For more info about our payroll support and their operating hours, please refer to this article: Contact Payroll Support.

Furthermore, here’s an article on managing payroll reports in QBO to gain business insights: Run payroll reports.

Keep us posted for additional questions about 401k deductions or any QuickBooks queries. Take care.

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How do I correct excess salary deferral like excess employee contribution to 401k.